STAND. COM. REP. NO.  1758-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2956

      S.D. 1

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 2956, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MILK,"

begs leave to report as follows:

     The purpose of this bill is to help ensure that Hawaii dairy producers are paid a price commensurate with the quality of milk they produce by:

     (1)  Specifying that all Hawaii-produced fresh milk, up to 100 percent of the total production quotas for all milk sheds in the state, are deemed to be used as Class I milk, except under certain conditions;

     (2)  Repealing existing provisions that statutorily prohibit producers or producer distributors from having milk production quotas that exceed 20 percent of the total quotas established in the state; and

     (3)  Requiring the Department of Agriculture (DOA) to:

          (A)  Work with stakeholders in the Hawaii milk production industry to develop short- and long-term initiatives to ensure the availability of fresh milk for Hawaii; and

          (B)  With the University of Hawaii College of Tropical Agriculture and Human Resources, prepare and submit a written report and strategic plan setting forth the recommended short- and long-term initiatives to the Legislature.

     DOA and the Hawaii Farm Bureau Federation supported this bill.

     Your Committee has amended this bill by:

     (1)  Removing the appropriation and its associated effective date, and making the entire bill effective upon approval; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2956, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2956, S.D. 1, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair